2000 (11) TMI 131

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..... to answer in the negative and in favour of the assessee the following question: "Whether, on the facts and in the circumstances of the case, the settlement of lands made by the assessee to his three minor daughters fell within the meaning of taxable gift under the Gift-tax Act, 1958?" The assessment year with which we are concerned is 1970-71. During the course of the year, that is, on March 26, .....

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..... of the Gift-tax Act. By reason thereof, gift-tax is not chargeable in respect of gifts made by any person "to any relative dependent upon him for support and maintenance, on the occasion of the marriage of the relative, subject to a maximum of rupees ten thousand in value in respect of the marriage of each such relative". [That is how the provision read at that time; the limit is now rupees one hu .....

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..... wn to the fact that the gift deed expressly provides that the gift is made in satisfaction of the assessee's obligation under law to maintain his daughters. We think, in the circumstances, that the view taken by the Tribunal and the High Court deserves to be affirmed. The transfer to meet the obligation under law cannot be regarded as a gift within the meaning of the Gift-tax Act. Accordingly, t .....

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